Have foreclosure filings peaked in Sarasota, Florida?

Have foreclosures peaked in Sarasota, Florida? The Sarasota Herald Tribune reported today that number of Sarasota foreclosure filings dropped by 8.4% in September. It is too early to celebrate in my opinion but this is some positive news. Perhaps the bailout talk prevented some banks from initiating the foreclosure proceedings. It doesn't seem like the fundamental have improved in the last two months so perhaps the drop in filings is a fluke or just a wait and see attitude taken by some of the banks.

I remain optimistic about the future of Sarasota real estate activity. Properties have really come back to a "make sense" price. I remember in 2004 and 2005 I would walk into these 40 year 2 bedroom/2 bathroom starter homes that were selling for over $300,000 and think to myself, "this just doesn't make much sense. How can this home be worth this much?" My instincts were evidently right. Those same homes are now selling from $175k - $225k. Based on location, quality and people's income in Sarasota that is what they probably should be selling for.